Increase in healthcare spending, but still the same funding?

Will the future increase in healthcare spending be the same as the way healthcare is funded now?

I refer to the article “Govt spending on healthcare to rise sharply in next 3-5 years: Heng Swee Keat” (Straits Times, Dec 6).

It states that “predicts that by 2020, government spending will go up by “at least $3 billion”.

In this year’s Budget, the Ministry of Health (MOH) received $10 billion, up from the $4 billion health received in 2010 … predicting an annual budget of “at least” $13 billion from 2020.”

In this connection, from a cashflow perspective – will the Government in the future years – may still not be spending a single cent on healthcare, as total annual Medisave contributions plus the annual interest on total Medisave accounts’ balances may exceed total annual government spending on healthcare and withdrawals for medical expenses and insurance premiums?

About the Author

Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional qualifications.